Question

Journalizing and Posting Transactions and Adjustments D. Roulstone opened Roulstone Roofing Service on April 1. Transactions for April follow. Apr.1 Roulstone contributed $34,500 cash to the business in exchange for common stock. Paid $18,300 cash for the purchase of a used truck. Purchased $9,300 of ladders and other equipment; the company paid $1,000 cash, with the balance due in 30 days. Paid $8,640 cash for two-year (or 24-month) premium toward liability insurance. Purchased $3,600 of supplies on credit. Received an advance of $5,400 cash from a customer for roof repairs to be done during April and May. Billed customers $16,500 for roofing services performed. 18 Collected $14,700 cash from customers toward their accounts billed on April 12. 29 Paid $2,025 cash for truck fuel used in April. 30 Paid $300 cash for April newspaper advertising. 30 Paid $7,500 cash for assistants' wages earned. 30 Billed customers $12,000 for roofing services performed.

Answer 1

Date General Journal Debit Credit Apr. 01 Cash 34,500 Common Stock 34,500 Ownerinvested cash Trucks Apr. 02 18,300 Cash 18,300 Purchase truck Apr. 02 Equipment 9,300 Cash 1,000 Accounts Payable 8,300 Purchase equipment Prepaid Insurance Apr. 03 8,640 Cash 8,640 Purchased liability insurance Apr. 05 Supplies Accounts Payable 3,600 3,600 Purchased supplies Cash 5,400 Apr. 05 Unearned Roofing Fees 5,400 Received advanced payment for repair work Accounts Receivable Apr. 12 16,500 Roofing Fees Earned Billed for services performed 16,500


Cash Apr. 18 14,700 Accounts Receivable 14,700 Collected from customers billed on April 12 Fuel Expense 2,025 Apr. 29 Cash 2,025 Paid for April fuelexpense Advertising Expense Apr. 30 300 Cash 300 Paid for April newspaperadvertising Wages Expense 7,500 Apr. 30 Cash 7,500 Paid wages Accounts Receivable Apr. 30 12,000 Roofing Fees Earned 12,000 Recorded feesearned